Car insurance policy is available with many different add-ons that significantly enhance the policy cover. These add-ons can help you avoid financial loss in case of damages or accidents. One such popular add-on often recommended is a return to invoice cover or RTI.
What is Return to invoice cover?
As the name suggests, return to invoice or RTI add-on is where your car insurance company pays the invoice value of your vehicle in case of an accident beyond repair. Since being an add-on, it is not mandatory and can be opted depending on your coverage requirements.
When you purchase a comprehensive car insurance policy, you have the option to set the IDV of your car within a particular range. IDV is the maximum amount that is paid by the insurance company in an event of complete damage or total loss. This amount of IDV is further reduced by depreciation on your vehicle. Using an RTI cover, you can ensure there is no loss in form of depreciation at the time of claim. It can act as a silver lining when your car is beyond repair.
Let us look at some commonly asked questions regarding RTI add-on.
When can I avail the return to invoice cover?
Return to invoice cover is available for cars that are less than 3 to 5 years old. It differs among insurance companies. You can make a claim using RTI cover only in the event of total loss suffered by the insured car. You will require to submit the original invoice at the time of claim.
How much is paid in form of claim with RTI cover?
The calculation of the claim amount is based on the invoice value of your car. The insurance company pays the invoice value of your car as claim after reducing deductibles and other charges as per the terms of the policy.
Who should opt for an RTI cover?
You can purchase any number of add-ons as required but return to invoice cover finds its use in limited cases. Owners of new cars can ensure comprehensive coverage using one. Also, if there are high instances of theft in the locality of your residence, it is advisable you purchase an RTI cover. Lastly, if you live in a region where there are frequent natural calamities, investing in a return to invoice add-on can help secure your car.
What is the validity of RTI cover?
Akin to your insurance cover, it is valid for the same duration as your base comprehensive car insurance. You can purchase an RTI add-on at each car insurance renewal to enjoy the continued benefits of this add-on cover.
Are there deductions at the time of pay-out using RTI cover?
Enquiring with your insurance company will help you know the various deductions that shall be made from your pay-out. These deductions can be as mentioned in your policy document.
Are additional fittings of your car covered under this add-on?
No, only the invoice value of your car is paid by the insurance company.
What is included in the pay-out amount of your insurance cover using RTI add-on?
The amount paid towards road tax and registration charges is also included in the pay-out when making a claim using RTI cover.
Can RTI add-on be combined with other add-ons?
Yes, there is no restriction of combining other add-ons with an RTI cover. Since RTI cover has limited use cases like total loss or complete damage, it is best to purchase other add-ons too. Other commonly purchased add-ons include zero depreciation cover, engine protection cover, 24×7 roadside assistance, and more. A car insurance calculator is a nifty tool that can help you assess the impact of selecting various add-ons on your insurance premiums.
These are some of the frequently asked questions about a return to invoice cover. Now that you know facts and your myths are debunked, make a smart choice in selecting insurance with an add-on facility.